Kicking the Tires On Ally’s Auto-Lending Unit

Ally Financial’s North American auto financing group could be worth some $68.3 billion in an acquisition, and could fit for Wells Fargo, Keefe, Bruyette & Woods says in a report today.

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The former GMAC has reportedly been weighing selling its various units, particularly its auto lending and its banking business, Reuters reported last week.

The report came as Ally still has yet to go public and as the Treasury Department has been looking to get out of its nearly 74% ownership, which it acquired when it gave Ally $17.2 billion in TARP funds.

KBW analysts Tuesday laid out the various scenarios for breaking up Ally and what each could command.

KBW says Wells Fargo, whose CEO John Stumpf has said is interested in acquisitions, would make a good fit. If the bank offered a 5% premium to net asset value, it could bring Ally $68.3 billion, boosting Ally’s 2012 earnings by 7% and 2013 by 6%.